PPT-Indifference

Curve Analysis ASSUMPTION OF INDIFFERENCE CURVE ANALYSIS 1 A consumer is assumed to buy any two goods in combinations 2 A consumer can rank the alternative combinations and compare their level of satisfaction and he prefers a combination providing a higher level of satisfaction. Indifference curves . Chapter 3. Budget line. 2. Points on the budget line indicate all the bundles of goods that the consumer can afford.. Good 2. 150. 50. 100. Good 1. 150. 100. 0. 50. Indifference Curve. Topic 3. Outline. Concepts—definition/illustration. Indifference map. Slope of indifference Curve/MRTS. DMRTS/reasons. Assumptions of Indifference curve. Properties of Indifference Curve. Budget . line. Lecture# 5. Consumer behavior. O. rdinal Approach/ Indifference Curve Analysis. Indifference Curves. Indifference analysis . is an alternative way of explaining consumer choice that does not require an explicit discussion of utility.. Utility and Choice. . Objective. Build a model to understand how a consumer makes decisions under scarcity.. To understand his choice we need to know:. Preferences. Constraints. Consumer makes a choice that results in the maximum satisfaction or UTILITY.. 14. February 26. th. , 2014. Lecture . 16. Ch. . 9. . Ordinal Utility:. Indifference Curve Analysis. Indifference . Curves. An . indifference curve. . represents all the combinations of the two goods amongst which. Ms. Parra 2012. stifle. verb. To suppress, curb or . withold. capitulation. Noun. The act of surrendering, giving up resistance. vital. Adjective. Necessary to life. quarrel. noun. an . angry. fight or disagreement.. 3.1 Consumer Preferences. 3.2 Budget Constraints. 3.3 Consumer Choice. 3.4 Revealed Preference. 3.5 Marginal Utility and Consumer Choice. 3.6 Cost-of-Living Indexes. Consumer Behavior. ●. . theory of consumer behavior . Challenging the Globalization of Indifference. Michael H. Crosby, OFMCap.. St. Michael’s Church / Independence, Ohio. March 22, 2017. A. DULT . C. ATHOLIC . E. DUCATION. THE NEED FOR A NEW CONSCIOUSNESS. Warm-up Question. What do dating and marriage have to do with economics? . Scarcity. Choice. Utility maximization . Economics and Marriage. A market is any mechanism or institution that brings buyers together with sellers. What is “Indifference”? . indifferent: . 1 having or showing no partiality, bias, or preference; neutral 2 having or showing no interest, concern or feeling; uninterested, apathetic, or unmoved. .. So what!. Awesome!. This is a picture of my cat. Indifference. Interest. Expressing interest. Expressing indifference. How interesting!. Wow! That sounds exciting!. Awesome!. How great!. That is amazing!. Indifference:. Having a neutral or unbiased disposition.. Not interested in or concerned about something.. Apathetic; not easily interested or moved.. Characterized by lack of active quality.. ~ Webster. Objectives: . Upon completion of this unit students should be able to;. Define the concept of utility as basis of demand.. Define Marginal utility and diminishing marginal utility.. Draw indifference curve and individual demand curve.. Country Bookshop, kimberlyddaniels@gmail.com. Erica Merrell, Wild Iris Books, erica@wildirisbooks.com. Inventory. – . catalog or list of tangible goods or property, or . intangible . attributes or .